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Should you use LendKey?
What is a student loan market?
A student loan market allows you to compare loan offers from multiple lenders at once. The market allows you to check your rates without impacting your credit score.
If you choose not to use a student loan marketplace, you will complete separate applications for each lender you are considering. You will then need to compare the terms of each loan yourself – a spreadsheet can be useful here.
Loan Key Review
LendKey is do not a lender, and it does not guarantee or finance loans. Instead, it matches you with one of its partner credit unions or community banks. The company offers student loan refinances and new private student loans.
The terms of its refinanced loans range from five to 20 years. Refinanced loans have variable rates between 1.90% and 5.25% with AutoPay and fixed rates between 2.49% and 7.93% with AutoPay. AutoPay gives you a 0.25% rebate.
LendKey’s new loans have only one term, 10 years. With an AutoPay rebate of 0.25%, new loans have a variable APR between 1.57% and 7.66%. Its fixed APR is between 3.99% and 7.66% with AutoPay.
You can borrow up to 100% of your participation fee with LendKey. The minimum loan amount for a new loan is $2,000, while the minimum loan amount for a refinanced loan is $5,000. The minimum refinance is $10,001 in Arizona and Connecticut and $6,000 in Massachusetts. Asking for a lower loan amount will not increase your chances of approval because approval is based on a review of your credit.
The company doesn’t disclose the minimum credit score you’ll need to get a loan, but generally, the higher your score, the more likely you’ll be approved.
LendKey allows co-signers on its loans. Co-signers are not required, but may improve your chances of getting a loan or qualify you for better terms than you would get on your own.
You won’t pay any setup fees or prepayment penalties with LendKey.
Who is LendKey for?
LendKey is best for borrowers who don’t want the hassle of going to multiple lenders and researching the best rates. LendKey will manage this process for you with a simple app.
Plus, you might like LendKey if you can qualify its lowest rates, which are competitive with the rates of many other top student lenders.
Is LendKey trustworthy?
LendKey has an A grade from the Better Business Bureau, a non-profit organization focused on consumer protection and trust. The BBB determines its ratings by evaluating a company’s response to customer complaints, honesty in advertising, and transparency in business practices.
A company’s BBB rating does not guarantee that you will have a good relationship with the lender, so take it with a grain of salt. Ask friends and family about their experience with the company before making your decision.
LendKey has not been involved in any recent controversies. LendKey has a clean track record and an excellent BBB rating, so you can decide that you’re comfortable borrowing from the lender.
How LendKey Compares to Other Lending Marketplaces
We compared LendKey to two other lending marketplaces with similar offerings and sign-up processes: Credible and Lend-Grow.
LendKey has slightly higher minimum rates than Credible or Lend-Grow, but caps its rates lower than Credible. If you have excellent credit, you may be able to get a slightly lower interest rate with Credible or Lend-Grow.
Lend-Grow only offers student loan refinancing, so you’ll have to choose from one of the other lenders if you want a new loan. In addition to student loan offers, Credible also lets you shop for personal loans, home loans, and mortgage refinance offers.
None of these lending marketplaces have a mobile app or charge a fee.
Frequently Asked Questions
What is the benefit of a student loan market?
A student loan marketplace shows you a list of lenders and the rate each would charge you. You won’t have to spend time filling out multiple applications with different lenders – everything will be in one place for you.
Why should I refinance my student loan?
Here are common reasons to refinance your student loans:
- To lower your interest rate. This is probably the most common reason people refinance their student loans. If you can get a better interest rate — maybe your credit score has improved, you’ve added a co-signer, or you’ve found a lender with more favorable terms — you’ll save money on your loan.
- Switch from a variable rate to a fixed rate. Although variable rates often start lower than fixed rates, you are not guaranteed that they will stay low indefinitely. You may prefer to lock in a fixed rate so you can create a locked-in repayment plan for your loan.
- To change your term of office. If your monthly student loan payments are too high for your current budget, you may want to spread your balance over an extended period. Keep in mind that if you extend your term, you’ll likely pay more interest. If you’re looking to save on overall interest, you can reduce the term of your loan. This will allow you to aggressively pay off your debt with higher monthly payments.
What happens if I refinance my federal student loan?
Be careful before deciding to refinance a federal student loan. Even if you are able to get a lower rate when you refinance a federal loan into a private loan, you will lose the main protections that come with federal loans. For example, you will not be eligible for the COVID-19-related student loan payment pause, currently in place until August 31, 2022, and federal student loan relief programs like the Service Loan Forgiveness. public.
You’ll also miss out on some repayment options like income-contingent repayment plans, which consider your specific income and family size when determining monthly payments.